whether terms and condition can be changed from the origina

marryammohamadi · Post by **marryammohamadi** » Sat Oct 20, 2001 1:00 am

i know that according to ucp 500 sub-article 48(h) the l/c can be transferred only on the terms and conditions specified in the original l/c except for the amount , the expiry date ,the last date for presentation of documents in accordance with artivl 43 and the period of shipment maybe reduce or curtailed
now my question is thar is it possible whether terms and condition can be changed from the original transferable l\c except for specified terms under sub-article 48(h)

PavelA · Post by **PavelA** » Sat Oct 20, 2001 1:00 am

There is an interesting debate re. transferable L/C and possible changes on the third page of this Forum already, this might provide you with a clue.
Article 48 of UCP500 specifies permitted changes between terms and conditions applied to the first and second beneficiary(ies). If futher changes are needed, this must be expressly allowed for in the original L/C. As the relevant Sub-art. 48h does not use "Unless otherwise stated in the Credit" wording when describing the possible changes, it would be prudent to specifically tackle this in the original L/C as well.
Also the transferable bank must be willing to follow these instructions.
However I believe that majority of the banks would be very careful about this.

Pavel Andrle

[edited 10/20/01 12:56:36 PM]

AbdulkaderBazara · Post by **AbdulkaderBazara** » Sat Oct 20, 2001 1:00 am

It is not safe to do so. The transferring bank will run the risk of having the 2nd beneficiary comply with all the terms and conditions of the transferred letter of credit but would not be able to present the documents under the master credit. That is in case the 1st beneficiary delayed in substituting documents of the 2nd beneficiary, presented discrepant documents for substitution of some of the 2nd beneficiary’s documents or went out of business due to whatsoever reasons.

T.O.Lee · Post by **T.O.Lee** » Sat Oct 20, 2001 1:00 am

OUR APPRECIATION FOR ABDULKADER'S OPINIONS OF WISDOM

We appreciate the opinions of wisdom given by AbdulKader. This is the sort of quality comments we expect from the DC Pro Discussion Forum, rather than those generalised and safe comments or opinions that we all know by ourselves.
The Discussion Forum should not be used for such purposes.

We ae now working on three DC disputes cases concurrently and hence are unable to use our rice and noodle time on the DC Pro. However, it is exciting to see brilliant opinions coming from members such as AbdulKader this time. That is why although we are very busy, we still have to show our appreciation here.

AbdulKader, please keep up the good work. You have the potential to be a good DC consultant. And we would invite you to be our partner after you have retired.

http://www.tolee.com

[edited 10/20/01 5:23:42 PM]